Business management made simple.

business management course

As a business leader there are so many intricate tangents and sideshows that can divert your attention from the art of managing your business. Make no mistake the details are important they are the finesse to the standards you have carefully shaped and polished to assemble your brand into its best light. Yet sometimes we can get lost in the menagerie of too much detail and become entangled in our own designs.

Take a helicopter view. Stand above the business and see the whole picture. The initial order, the time frame to delivery. How long does the whole process take? What are the percentages of returns, refunds, missed orders and lost deliveries to the rate of success? Review client response and comments. The next stage once you are confident that enquiries are optimised by orders, take a look at the length of service time. Is it what you and your customers expect?

Expectation management relies on the flow of information from what the customer anticipates to what they actually receive. Do you have a robust line of communication that encourages the customer to review their experience and give accurate feedback?

Move forward from this and look at the public domain. Are you doing what you say you do when you said you would do it? As the order comes in from the outside how precise is the service back to the consumer? What’s the X factor that makes it a great experience? Do others in your industry do it better, faster, with greater care and accuracy? What could you do to balance consistency with satisfaction, and how might you move to the glorious position of exceeding expectations?

They ask how’s your staff development doing, is retention an issue and do you really have the best inside your compound? The figures won’t lie. Consider the number of enquiries to the number of orders. Do you know the percentage of completions? What is acceptable to you? Can this one area be focused on and improved? Now you are at the finish line. It’s all in the training can be a great way to raise productivity, efficiency and profitability. It can also be a massive boost to morale, skillsets and motivation.

There is nothing more stimulating in business to see hard-line investment into the staff that you rely on, start to meet their obligations consistently and then begin to exceed them. As you invest in their skills watch the new possibilities open up. But here is the secret key, be the incentive, show you want the best for them, that you are truly one team and that the business is a combined effort. A gallup report done in the USA showed that only 1 in 3 employees are engaged with their position.

That’s a lot of people being paid who are simply not interested in giving their best. That’s just wasting life. The difference that can change this is when an employer does take note and engages sincerely with his team – constantly. The boss who enjoys my successes and supports me through the disappointments is the boss who encourages me to excel. Imagine the difference. When all the facts and figures are jostled and dissected, it’s the simplest of actions that cost so little and yet reap the greatest rewards.

 

Negotiation – When is the right time to walk away?

What is negotiation? And when is the right time to walk away?

 Ideally, negotiation should be a discussion to achieve the best deal for both parties by working towards a Win-Win result and subsequently maintaining a long-term trusting relationship.

However, have you ever regretted paying so much more than you intended for goods or services; or felt that you obtained far less than you had hoped for during contract or salary negotiations? How about being set ‘impossible’ deadlines?

negotiation course

Would you be able to retain an ongoing relationship with an organisation after being ‘forced into a corner’, rushed into a decision or overcharged; or wish to continue doing business with a company or individual trying to ‘squeeze every last penny’ out of you?

Negotiating is not confined to business and there are numerous occasions in your personal lives when you negotiate with your partner (choosing a restaurant), children (TV time), salespeople etc. When is it time to find another dealership when your car salesman won’t ‘give an inch’; or advertise for another buyer when someone is unwilling to offer a satisfactory price for your precious heirloom?

In all these cases, any agreement tends to be short-term, usually with a ‘winner’ and a ‘loser’. Even a compromise (meeting halfway), may result in both parties ‘losing’ and walking away unhappy, not caring about the consequences.

Planning for negotiation

How can you work towards a Win-Win outcome to ensure a long-term, productive relationship and a willingness from both sides to engage in future opportunities beneficially?

The key is to plan your strategy in advance, know exactly where your limits lie and, critically, the point at which you will walk away to find a more acceptable solution. Of course, you then need the courage and conviction to do so.

Let’s consider a 3-step approach to a negotiation which could involve money, time frames and/or additional elements/conditions depending on your objectives.

You need to decide on your:

  • Ideal Position
    • The best option or deal for you
  • Realistic Position
    • What you believe both parties will agree to
  • Fallback Position
    • The one you won’t go below (or above)

For example, if you are negotiating to purchase parts from a Supplier, you would start low:

  • Ideally, you would like to pay £5,000
  • Realistically (based on experience and research), £7,000 may be achievable
  • You would not be willing to pay more than £9,000 (Fallback)

The Supplier, however, wishes to sell to you at the highest possible price, so they would start high:

  • Ideally £10,000
  • Realistically £8,000
  • Fallback £6,000 (no less)

These Positions should now allow some flexibility in reaching a mutually satisfactory agreement during discussions.

BATNA Best Alternative To a Negotiated Agreement

Understanding BATNA

In the above case, if the Supplier insists on £10,000, for example, you now have to assess your BATNA since that figure is above your Fallback Position.

Therefore, you are unable to reach a satisfactory conclusion and risk sacrificing too much. What is your best alternative and do you wish to maintain your relationship with that Supplier?

  • Decide if and when to walk away
  • Ask for more time to think about it
  • Discuss possible add-ons or incentives
  • Find another Supplier
  • Produce the parts yourself
  • Take legal action

If you apply the above example to buying a car you really like, maybe you can ask for extras (higher spec sound system, longer warranty, free services etc), delay your decision or reluctantly leave to find another dealership (that might even encourage the salesperson to reconsider the price).

The underlying factor is how important you feel it is for you to continue working effectively with the other party.

Find out more about Negotiating Skills with STL.

Conclusion

Prior to a negotiation, ensure you are clear about your objectives and, particularly, the three Positions you are aiming for.

Decide whether you wish to maintain an ongoing relationship with the other party in order to leave your options open for future opportunities together and consider the implications of the BATNA you choose.

If you cannot reach a mutually agreeable outcome, don’t be afraid to walk away in the face of risky and/or unacceptable conditions imposed by the other party.